FRAMINGHAM, Mass. — (BUSINESS WIRE) — April 11, 2016 —
Worldwide PC shipments totaled 60.6 million units in the first quarter
of 2016 (1Q16), a year-on-year decline of 11.5%, according to the
International Data Corporation (
IDC)
Worldwide
Quarterly PC Tracker. Shipments were in line with conservative
expectations for a decline of 11.3%, and anticipated a relatively weak
environment during the first half of 2016 as Windows 10 enterprise
upgrades largely remained in pilot phase while consumer demand remains
weak. The volatility in stocks, commodities and currencies also helped
depress shipments.

Inventory reductions in the channel, which were a headwind through much
of 2015, seem to be wrapping up. Similarly, some rebound in economic
conditions should support both commercial and consumer activity going
forward. Nevertheless, channels, vendors, and users remain cautious
about new purchases. Overall, Asia/Pacific and EMEA performed slightly
better than forecast, while the Americas pulled down worldwide results.

"In the short term, the PC market must still grapple with limited
consumer interest and competition from other infrastructure upgrades in
the commercial market," said
Jay
Chou, Research Manager, IDC Worldwide PC Tracker, "Nevertheless, IDC
still projects total business IT spending to grow compared to 2015, and
as we head toward the end of 2016 things should start picking up in
terms of Windows 10 pilots turning into actual PC purchases."

PC shipments to the U.S. fell 5.8% to 13.6 million units in 1Q16. PC
channels remained challenged with aging inventory although inventory
churn has reportedly improved throughout the last two quarters. Market
inhibitors that were present in 4Q15 lingered through 1Q16. These issues
included softened demand due to global economic concerns, the Windows 10
free upgrade path stalling some consumer PC purchases, and increased
attrition towards detachables. "Demand for PCs in the U.S. remains
sluggish," said IDC Research Director, Devices & Displays,
Linn
Huang. "However, we should be entering a period of reprieve. Peak
corporate and education buying seasons have historically started in the
second quarter. With some IT buyers thinking about early Windows 10
transitions and with the potential continued ascent of Chromebooks in
U.S. K-12, the PC market should experience a modest rebound in the
coming months."

Regional Highlights

United States – Dell overtook HP Inc. for the first place ranking
for the first time since the third quarter of 2009, ending a run of 25
consecutive quarters with HP Inc. at the top of the U.S. PC market.
Dell's U.S. PC shipments rose 4.2% year over year to 3.48 million – good
for a 25.6% share. HP Inc's PC shipments to the U.S. fell 14.1% to 3.44
million units (25.3% share). Lenovo continued its aggressive growth
trajectory as its 1.9 million units shipped represented 21.1%
year-over-year growth and accounted for 14.1% of total U.S. PC
shipments. Apple's Mac shipments rose 5.6% year over year to nearly 1.8
million (13.0% market share). Acer's shipments fell 10.4% to 0.7
million, but the company overtook ASUS and Toshiba to regain a seat in
the U.S. top five.

Europe, Middle East, and Africa (EMEA) – EMEA PC shipments
declined double-digit year over year, which was in line with the
forecast. 1Q16 was the last quarter to suffer from an unfavorable
year-over-year comparison due to large Bing shipments in the prior year,
which significantly affected the consumer market. Windows 10 had a
limited impact on PC renewals as its rapid adoption came mostly from
free software upgrades. The new products launched with Windows 10 and
Skylake architecture supported sales growth but could not reverse the
overall negative trend.

Asia/Pacific (excluding Japan) – The APeJ PC market continued to
decline as end user demand remained soft, while vendors focused on
inventory clearing. Economic uncertainty weighed on the overall market
performance across the region, with businesses limiting their
investments and many commercial projects being postponed or downsized,
while consumer spending was dampened by currency fluctuations and
increases in pricing.

Japan – The market performed slightly better than forecast but
still had negative growth. Slowing economic outlook and continued
uncertainty over currency rates further dampened demand.

Vendor Highlights

Lenovo maintained its top global rank for the quarter with U.S.
growth in excess of 20%. However, the company faced a challenging
quarter in all other markets with international shipments declining
12.5% from the prior year, bringing total worldwide volume down 8.5%
from a year ago.

HP Inc. remained the number 2 vendor as it navigated its
separation from HP Enterprise during the quarter. The company struggled
with some inventory issues in North America and a continued slow market
in Latin America, with total worldwide shipments declining nearly 11%
from the prior year.

Dell remainedthe number 3 vendor globally, outperforming
the market with a decline of just 2%, and also pulled to the lead in the
United States market. Strong shipments of notebook PCs helped the vendor
achieve the best quarter among the top 5 vendors.